Fitch Ratings has affirmed its 'AA+' rating on the City’s wastewater utility enterprise sewer revenue bonds, and has assigned them a stable rating outlook.
The bonds, valued at approximately $33 million, were issued in 2009 for the Mulberry Water Reclamation Facility rehabilitation. This rating is part of ongoing monitoring by Fitch Ratings; the bonds are secured by and payable from a first lien on the net revenues of the wastewater utility. Revenues include connection charges.
In affirming the AA+ rating, Fitch cited the City’s:
• Solid financial performance - The system has consistently produced debt service coverage (DSC) at or above 2.0x over the past several years.
• Abundant liquidity - Management has maintained high cash balances with more than 900 days cash on hand in fiscal 2011 from all available sources.
• Low debt burden - Limited capital needs which have primarily been cash funded have helped to keep debt levels low.
Fitch Ratings says the wastewater utility’s financial profile continues to be strong, highlighted by solid DSC levels and high cash balances, as well as manageable capital costs.